Problem:
Unimed is a manufacturer of specialty medical equipment. For one particular varety of equipment offered:Average daily demand is 25 units, with a standard deviation of 6 units. Replenishment lead time is 15 days, with a standard deviation of 4 days. If the typical order quantity for Unimeds equipment is 80 units.
Question 1) Find the average inventory with safety stock at 3 standard deviations under demand and replenishment cycle uncertainty:
A) 389 Units
B) 284 Units
C) 349 Units
D) 244
Solve the problem and show all work.